CC / OD Limits
CC / OD Limit loans are 'running loan accounts, reviewed and renewed, if necessary after one year. In these loans, loan amount is sanctioned 80% of the security(ies) value. These are ideal for traders and manufacturers etc. Rate of interest on cc limit and overdraft depends on financial data of client. If his financial data contain good ratio, good sale, good profit margin, it may be less than general client. Normal rate of interest on CC limit and Overdraft is 12%.
Cash Credit (C/C) Limit : Granted against hypothecation of goods. Here the goods in the stores / godown / factory are kept as security and the client(s) enjoy the running loan against these. They are to keep a margin and submit the Stock Statement which will speak for the goods in the list and its latest valuation. It is verified and stale items excluded.
Over Draft (O/D) Limit : In this loan no 'goods' are involved, (Money) papers like : Bank FD, NSCs, Insurance Policies are kept as security.